Committee Meeting Information

November 1, 2006

UW Outreach Building (951 N. Poplar)

Casper, Wyoming

 

Committee Members Present

Senator Charles Scott, Cochair

Representative Elaine Harvey, Cochair

Senator Mike Massie

Senator Tony Ross

Senator Kathryn Sessions

Representative Rosie Berger

Representative Debbie Hammons

Representative Edward Buchanan

 

Committee Members Absent

None

 

Other Legislators Present

Representative Bob Brechtel

Representative Jack Landon

Representative Doug Osborn

 

Legislative Service Office Staff

Dave Gruver, Assistant Director

Joseph A. Rodriguez, Staff Attorney

Don Richards, Senior Research Analyst

 

Others Present at Meeting

Please refer to Appendix 1 to review the Committee Sign-in Sheet
for a list of other individuals who attended the meeting.


Executive Summary

The Legislative Oversight Committee on Quality Child Care met for one day in Casper, Wyoming.  The Committee received a report required by '06 Laws, Ch. 64 (2006 HB 92) from the Task Force on Quality Child Care.  In addition to providing an assessment of the quality and quantity of child care available in Wyoming, the Task Force, through Kathy Emmons, Director of the Department of Workforce Services, presented the recommendations of the Task Force to the Oversight Committee.  After taking public testimony on the recommendations, the Committee directed LSO staff, with substantial informational assistance from the Department of Workforce Services, to prepare draft legislation incorporating many of the Task Force recommendations and technical amendments into the legislation adopted in 2006.  The Committee also directed staff to draft a companion piece of the legislation that would include all of the necessary appropriations and personnel authorizations for implementation of the recommended programs.

The next meeting of the Committee will be held on November 14, 2006 in Casper for the purposes of working the draft legislation.

 

Call To Order

Cochair Harvey called the meeting to order at approximately 8:30 a.m.  The following sections summarize the Committee proceedings by topic.  Please refer to Appendix 2 to review the Committee Meeting Agenda.

 

Approval of Minutes

The minutes from the July 28, 2006 meeting of the Oversight Committee were approved without objection.

 

Remarks from the Cochairs

Cochair Harvey welcomed the attendees and suggested the Oversight Committee will look at whether there is enough child care in Wyoming, the quality of the system in Wyoming, and what role the state has in addressing deficiencies.

Cochair Scott reviewed the charge of the Oversight Committee as articulated in '06 Laws, Ch. 64.  He reminded the Committee that they agreed during its first meeting that the voucher system would not be looked at by the Committee, given the fact that only a part of the child care funding is being addressed by this Committee.  He stated that there are two items to be considered by the Committee including (a) needs assessment and (b) discussion of the operation of the program and statutory changes necessary.

 

Presentation by the Quality Child Care Task Force

Kathy Emmons, Director, Department of Workforce Services (DWS), provided an overview of the work of the Task Force, which was expanded beyond executive branch agencies by the Governor’s Office.  She suggested that the recommendations were a result of significant work and compromise of the Task Force.  Ms. Emmons interpreted the goals of the Task Force as:  (1) increase the quality of child care; (2) identify the quantity of child care and unmet needs; and  (3) identify ways to support the child care industry as an important contribution to the Wyoming economy.  In sum, she indicated the Task Force is proposing an additional level of resources for child care which follows the current charge of the Department.  (See Appendix 3 for a copy of the final Task Force report.)

Ms. Emmons initiated her discussion by reciting some overall findings of the Task Force including:

Donna Merrill, contractor, DWS, discussed the methods and results of the Assessment Profile conducted to assess the quality of child care.  (Appendix 4 provides a summary of the dimensions, methods, and results.)  She noted that three types of business were rated:  Family Child Care Homes, Family Child Care Centers, and Child Care Centers.  Ms. Merrill noted the Assessment found that health and safety dimensions scored highly and learning environment scored lowest in all settings.  Ms. Merrill noted that this profile was conducted through a stratified (on size and geography), random sample of providers with trained evaluators.  

For purposes of clarification, Ms. Emmons noted that legally exempt child care providers include those programs administered by state government or political subdivisions (or funded by state or county resources).  Also, child care providers serving two or fewer unrelated children are legally exempt from licensure.  Beverly Campbell, Department of Family Services (DFS), stated that the universe of unlicensed providers is unknown. 

Sue Bacon, Department of Family Services (DFS), explained the current federal program administered by DFS provides assistance to low-income working families, or those working toward self-sufficiency.  Currently the federal program supports about 3,000 families and 5,000 children in Wyoming at a cost of $12 million per year.  The state’s maintenance of effort is $1.5 million and the state contributes $2 million additional funds, bringing the total state contribution to $3.5 million.  Currently, the maximum reimbursement rate is established at 75 percent of child care market rates.  According to Ms. Bacon, this translates to a subsidy up to $500 per month, per child, but the actual amounts are based upon the age of child and type of facility.  Ms. Bacon indicated that payments are allowed for family members and legally exempt providers, and families up to 200 percent of the federal poverty level (FPL) are eligible for the program.  (See Appendix 5 for a summary of the rates by facility and age of child.)  Ms. Emmons noted that the statewide mean wage for all occupations in the state is $33,000 per year or $16.06 per hour.

Ms. Emmons discussed recommendations of the Task Force:  business management services, quality enhancement grants, early childhood scholarships for families, technical assistance, professional development grants, and quality rating assessments.  She discussed each of these components (See Appendix 3, pp. 3-9) and the associated recommended budget (See Appendix 3, pp. 17-18).  Highlights of the issues included:

Jim Pedersen, Pedersen Planning Consultants, provided a summary of the available services and unmet needs through 2016.  (See Appendix 6-1 for a copy of his presentation and Appendix 6-2 for a copy of the full report.)  He provided an overall summary of the statewide child care capacity, by county, and noted that the enrollment could exceed capacity due to the different times children are served.  The statewide summary also outlined enrollments by age.  Mr. Pedersen suggested that he believes there is a need for weekend, extended hour, and 24-hour child care.  He noted his expected total demand for child care, in terms of numbers of children range between 28,000 and 48,000.  He indicated that the unmet demand, based upon a midpoint estimate, is approximately 14,695 children in 2016.  Mr. Pedersen stated that the consequences of not addressing child care needs (a) reduces the extent of potential economic benefit derived from the expansion of the child care industry and (b) the state establishes an unnecessary barrier to workforce recruitment and retention.  Finally, Mr. Pedersen offered a range of potential opportunities to address child care needs.  (See Appendix 3, p. 10)

After breaking for lunch, Ms. Emmons continued her presentation.

Quality Rating Scale.  Ms. Emmons described the proposed elements of the quality rating system.  The levels were reduced from five levels (as in the original legislation) to four.  In addition, four dimensions are recommended to be measured:  Family Partnerships and Community Involvement; Staff Qualifications and Education; Learning Environment; and Staff/Child Ratios.  (See Appendix 3, pp. 5-9.)  Responding to Committee questions, Ms. Emmons indicated that based upon surveys, only about 14 percent of staff have an associates degree.  The target date to achieve an associates degree under the guidelines (2012) was established by the Task Force as a reasonable achievement date. 

Early Childhood Scholarships for Families.  Ms. Emmons proposed a system of scholarships based upon family income and the level of quality of the child care program.  She also explained the development of the Family Economic Self-Sufficiency Standard (FESS), which is based upon unique information in each county and measures the amount of funding to support a family without subsidy.  (See Appendix 7 for a copy of the FESS for four selected counties.)  The Committee discussed the regional cost differences allowed by this system and the need to update this standard regularly. 

Build Child Care Capacity.  Bob Jensen, WBC, explained the recommendations for child care facilities.  Specifically, he noted the Task Force recommended a separate pot of funds within the Business Ready Community program dedicated for child care services.  He also explained that perhaps the community facility grant and loan program could also be used for child care facilities.  Finally, he discussed a loan program for start-up and existing child care providers currently administered through the WBC.  (Appendix 3, pp. 12-13)  Mr. Jensen, responding to questions, indicated that the Business Council has already approved these types of grants based upon the fact that child care in Wyoming is an important contribution for workforce development.  According to Mr. Jensen, a separate pool of funds would reduce competition with, for example, recruiting new businesses and expanding existing businesses.

Capacity Development Grants.  Ms. Emmons indicated that this provision is already provided for in the original legislation and would provide for funds to purchase resources.

Responding to a question from the Committee, Dave Gruver, LSO, indicated there are constitutional considerations.  Neither the state nor any of its political subdivisions may make donations to individuals, corporations, or associations except for the necessary support of the poor; nor may appropriations be made to entities not under the absolute control of the state for charitable, educational and other specified purposes, citing the relevant Articles of the Constitution.  To avoid being a donation, adequate consideration back to the state should be provided.  He suggested that in the child development realm, a program could conceivably be constructed so that training of providers may be defensible, but it would be more difficult to defend the purchase of supplies for providers.  He indicated that if the Legislature wants to defend components of the program as “necessary support of the poor" the most extreme examples should be considered, since those would be the most likely to be attacked; e.g., as proposed, a provider providing the highest quality level care to three children of a single parent in Teton county making $87,000 would receive an annual subsidy of approximately $4,600 under the proposed program.  The Legislature is given deference in determining what is necessary support of the poor, but it is not unbounded deference.  He also added that the insertion of legislative findings could provide an explanation of the rationale to the courts, which may take those findings into consideration.

Public Comment

Karl Coulson, a child care provider in Laramie county, presented the Committee with a letter signed by many Laramie county child care providers.  (See Appendix 8). 

 

Jan Lawrence, Chairman of Basic Beginnings, noted that heavy regulation discourages making a profit and she operates a for-profit business.  She spoke in support of the quality rating system.

 

Kendra West, Director, Evanston Child Development Center, explained that her center is open 18 hours per day, but it adds an additional overhead cost for staff, meal provision, supplies, and oversight for sleeping arrangements.  She expressed her support for the provisions in the bill that would allow her to increase the wages paid to her workers.

 

Dianna Webb, Appletree Learning Center in Casper, expressed difficulty attracting staff due to low wages. 

 

Jackie Immel, Executive Director of Children and Nutritional Services, expressed support for the legislation.  She noted the lack of state support for early childhood care as compared to university education and K-12 education. 

 

Ginger Williams, The Learning Center located in Teton and Sublette counties, discussed the high cost of services in Teton county.  She noted the average cost of care is $38 to $40 per day for child care.  She expressed support for the bill, noting some changes may be necessary.

 

Charlie Ware, Chair, Workforce Development Council, stated that housing and child care are important workforce development issues.  He expressed his support for the bill on behalf of the Council.

 

Joan Bangen, expressed support for the work of the Committee.  She indicated that the legislation supports affordability, accessibility and quality.  She also spoke against making the bill too specific so that the system can adapt to new research.

 

Ginny Harmelink stated that the low learning environment scores may be due to the fact there are no requirements for competencies. 

 

Deanna Frey, Wyoming Childrens Action Alliance, expressed support for the Committee’s efforts. 

 

Becky Vanderberg, Wyoming Family Coalition, stated that every bill has good intentions and has unintended consequences.  She spoke against government intrusion and cited concerns that would take away parental choice and options. 

Representative Landon suggested the system is fairly complicated as proposed, and indicated that he was thinking about ways to simplify the proposals.  He brought to the attention of the Committee dimensions that were easy to measure, e.g., staff ratios, training, etc.  He cited research that suggested that family features were more important than child care quality, and the most reliable factor in child development were the characteristics of the mothers.  Representative Landon suggested that rather than levels of quality, one could assign points and then make the assessment on the cumulative number of points received in areas that research suggests are high quality.  He suggested that compensation of providers might be varied by the time of day. 

Committee Directives

The Committee discussed raising the current rates paid for by DFS under the federal program and whether there would be unintended consequences

Next, the Committee walked through the recommendations (See Appendix 3, pp. 3-18): 

Ø      Business management services – The Committee directed staff to include this component in the draft legislation including funding of $230,000.  The Committee requested two options:  (1) directing the funding to DWS for subsequent contract and (2) directing the funding to WBC.  The Committee directed staff to include language to contract with appropriate providers and include classroom training with individual consultation, as appropriate.

Ø      Quality enhancement grants – The Committee discussed the constitutionality of this component, noting the public purpose is necessary but not sufficient to pass constitutional muster.  Ms. Curran, Governor’s Office, suggested that one of the reasons this component was recommended was to jump start the scholarship portion of this funding.  Dave Gruver discussed broad options that would assist in making these types of grants more defensible, such as legislative findings of reduced state educational expenditures and adequate consideration.  The Committee discussed requirements of a tracking system that may show improvements in child development and the existing reporting requirements in the current legislation.  The Committee did not adopt this component to be included in the draft legislation.

Ø      Early childhood scholarships for families – Cochair Scott suggested one draft section with different fiscal options on a half-year and full-year basis, showing different income eligibilities and quality rating assumptions.  Senator Massie requested the DWS propose options to remove the fifty percent of market rates cap with some kind of an income test.  The Committee discussed using the FPL or the FESS and directed DWS staff to base the estimates on percentages of the FPL and use the county relative costs as determined by FESS and the regional cost adjustment used in K-12 to derive county variations.  The Committee clarified that the regional adjustments should be made only for the eligibility levels and not for the payments made to providers. Further, the Committee directed LSO staff to incorporate appropriate draft language to meet the requirements discussed above and specifically reference the table on page nine of the Task Force Report (Appendix 3) for the amounts based upon levels, but not based upon FESS levels, and require DWS to request in each biennial budget submitted to the Governor the amount which would be necessary based upon the parameters set by statute.  The Committee also discussed what information might be included with the DWS budget submission.

Ø      Technical assistance – The Committee directed LSO staff to include the recommendation in the draft language along with five FTE and $420,360 to DWS.

Ø      Professional development grants – The Committee directed staff to incorporate this suggestion and maintain the ten percent matching requirement included in existing statute.  The Committee further directed staff to limit the grants to educational scholarships.

Ø      Quality assessment – The Committee directed staff to incorporate this recommendation in the draft, building upon the existing language in statute.

Ø      Capital construction – The Committee directed staff to set aside a specific source of funding for a separate pool of funds under the BRC option, including the recommended appropriation and requested FTE for the WBC.

Ø      The Committee noted that the recommended loan program already exists.

Ø      Capacity enhancement grants – After discussion, the Committee directed staff to include this provision, incorporating the structure of the grants which call for per child funding found in current statute in order to purchase "slots for children".  Ms. Emmons noted that the recommendation in the Task Force report is quite different than that found in legislation.  The Committee further directed staff to include language that would restrict eligibility for the grants to those children eligible for the scholarships discussed above or the DFS subsidy program discussed above and clarified special populations such as infants and children whose care may otherwise be difficult to obtain in the community, as stated in the original legislation, would be eligible if the families met the income requirements.

Ø      Quality rating system– The Committee directed staff to include general language to allow DWS to write rules, based upon current statutory charge language, including four or five parameters and four levels.  The Committee directed DWS staff to provide LSO staff with suggested language for the parameters.  The Committee further requested that the draft require those with direct contact with children have a bachelor’s degree in the age-appropriate discipline by 2017 to qualify at the highest level.  Directors would be excluded from this requirement if they were not directly providing care to the children.  The Committee clarified this requirement should apply to centers and home-based care.

Ø      Parent education and public awareness, uniform reporting, and grievance board – The Committee noted these provisions are already in the bill and should be continued.  DWS staff indicated that they would provide, to LSO staff, an amendment that applies to these areas to be included in the draft.

Ø      The Committee discussed whether a new bill should be created or HB 92 from last year be used as the basis for the new legislation.  The Committee directed LSO staff to make several specific clean-up provisions, including proper reference to DFS on pages 3 and 7 of the adopted legislation; removing the discussion of at-risk included in W.S. 14-4-203; remove references to the Oversight Committee and Task Force, as appropriate; codify on-going reports; include modifying language which would allow federal references to be modified without requiring state references to be modified. 

Ø      LSO staff confirmed that the Committee desired to keep the legislation in its present form, except for changes directed by the Committee and enumerated above.  The Committee also authorized LSO staff to make technical changes as needed.

Ø      The Committee directed staff to separate the authorizing language and the appropriations and personnel authorizations, by specific component, into two bills and to include all recommended appropriations and personnel authorizations as recommended for each component in the Task Force report.

Ø      The Committee also directed DWS to provide the first-year and subsequent year (steady state) anticipated costs of the legislation and proposals, incorporating different options and assumptions for each of the above components by the November 14th meeting.

The Committee suggested that by the time the Legislature convenes in January, DWS should have a draft of proposed rules and regulations prepared.  Representative Berger asked for a report on the Riverton day care leasing a community facility through the business ready community program.

The next meeting of the Committee will be November 14, 2006 in Casper.

 

Meeting Adjournment

There being no further business, Cochair Scott adjourned the meeting at 5:50 p.m.

 

Respectfully submitted,

 

 

 

Senator Scott, Cochairman                   Representative Harvey, Cochair                     


[Top] [Back] [Home]